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| Greek debt crisis: EU agrees €7bn loan as Germany backs new bailout talks - as it happened | |
| (35 minutes later) | |
| 6.35pm BST18:35 | |
| EU agrees €7bn bridging loan, paving way for bailout talks | |
| Following a vote in favour of starting talks about a third Greek bailout in the German parliament, the EU has agreed to a €7bn, three month bridging loan for the country. | |
| This will allow Greece to make a €3.5bn payment due to the European Central Bank on Monday, as well as pay the €1.5bn arrears it owes to the International Monetary Fund. | |
| Paying off the debt to the IMF would allow the fund to take part in a future bailout, although managing director Christine Lagarde repeated her call for debt relief. | |
| In any case, the parliamentary votes and the bridging loan have paved the way for negotiations on a bailout of up to €86bn to begin. | |
| But some less happy news from Greece, where emergency services are battling a series of fires around the country, fanned by strong winds and high temperatures. Dozens of people leaving their homes as the fires edge towards inhabited areas. More here. | |
| In better news, it looks like Greek banks may well reopen on Monday after being shut for three weeks. | |
| On that note it’s time to close up for the day. Thanks for all your comments, and we’ll be back next week. | |
| 6.33pm BST18:33 | |
| There’s been some confusion about whether Greek banks will or will not open on Monday, but a senior banker has now said they will. Helena Smith reports: | |
| After three weeks of being closed and with capital controls, banks will reopen on Monday, a senior finance official in Athens has said, ending speculation that they would remain shut for a while longer. | |
| Earlier in the day there were concerns that it would be technically too difficult to open branches without special preparation. But the official confirmed that lenders would re-open for specific operations barring foreign transfers. | |
| “We are expecting a decree either later tonight or tomorrow with the specifics,” he told me. “What is sure is that they will only open for domestic banking operations, capital controls will still be in place for foreign transactions.” | |
| But, he added, the government would facilitate cash withdrawals from ATMs by allowing customers to withdraw weekly amounts of 60 euro daily limits. Business transactions would also be fast-tracked in an effort to re-energise the economy. “No funds will be transferred abroad. Restrictions will be in place for at least six months although my gut feeling is that capital controls will probably last a lot longer.” | |
| 5.19pm BST17:19 | 5.19pm BST17:19 |
| With Greek bailout talks back on, former US Federal Reserve chairman Ben Bernanke says that Europe needs to hold up its end of the bargain: | With Greek bailout talks back on, former US Federal Reserve chairman Ben Bernanke says that Europe needs to hold up its end of the bargain: |
| Specifically, is the euro zone’s leadership delivering the broad-based economic recovery that is needed to give stressed countries like Greece a reasonable chance to meet their growth, employment, and fiscal objectives? Over the longer term, these questions are evidently of far greater consequence for Europe, and for the world, than are questions about whether tiny Greece can meet its fiscal obligations. | Specifically, is the euro zone’s leadership delivering the broad-based economic recovery that is needed to give stressed countries like Greece a reasonable chance to meet their growth, employment, and fiscal objectives? Over the longer term, these questions are evidently of far greater consequence for Europe, and for the world, than are questions about whether tiny Greece can meet its fiscal obligations. |
| Unfortunately, the answers to these questions are also obvious. Since the global financial crisis, economic outcomes in the euro zone have been deeply disappointing. | Unfortunately, the answers to these questions are also obvious. Since the global financial crisis, economic outcomes in the euro zone have been deeply disappointing. |
| He also points to the strength of the German economy as a problem: | He also points to the strength of the German economy as a problem: |
| Nobody is suggesting that the well-known efficiency and quality of German production are anything other than good things, or that German firms should not strive to compete in export markets. What is a problem, however, is that Germany has effectively chosen to rely on foreign rather than domestic demand to ensure full employment at home, as shown in its extraordinarily large and persistent trade surplus, currently almost 7.5 percent of the country’s GDP. Within a fixed-exchange-rate system like the euro currency area, such persistent imbalances are unhealthy, reducing demand and growth in trading partners and generating potentially destabilizing financial flows. | Nobody is suggesting that the well-known efficiency and quality of German production are anything other than good things, or that German firms should not strive to compete in export markets. What is a problem, however, is that Germany has effectively chosen to rely on foreign rather than domestic demand to ensure full employment at home, as shown in its extraordinarily large and persistent trade surplus, currently almost 7.5 percent of the country’s GDP. Within a fixed-exchange-rate system like the euro currency area, such persistent imbalances are unhealthy, reducing demand and growth in trading partners and generating potentially destabilizing financial flows. |
| ... Germany could help restore balance within the eurozone and raise the currency area’s overall pace of growth by increasing spending at home, through measures like increasing investment in infrastructure, pushing for wage increases for German workers (to raise domestic consumption), and engaging in structural reforms to encourage more domestic demand. Such measures would entail little or no short-run sacrifice for Germans, and they would serve the country’s longer-term interests by reducing the risks of eventual euro breakup. | ... Germany could help restore balance within the eurozone and raise the currency area’s overall pace of growth by increasing spending at home, through measures like increasing investment in infrastructure, pushing for wage increases for German workers (to raise domestic consumption), and engaging in structural reforms to encourage more domestic demand. Such measures would entail little or no short-run sacrifice for Germans, and they would serve the country’s longer-term interests by reducing the risks of eventual euro breakup. |
| He concludes: | He concludes: |
| I’ll end with two concrete proposals. First, negotiations over Greece’s evidently unsustainable debt burden should be based on explicit assumptions about European growth. If European growth turns out to be weaker than projected, which in turn would make it tougher for Greece to grow, then Greece should be allowed greater leeway after the fact in meeting its fiscal targets. | I’ll end with two concrete proposals. First, negotiations over Greece’s evidently unsustainable debt burden should be based on explicit assumptions about European growth. If European growth turns out to be weaker than projected, which in turn would make it tougher for Greece to grow, then Greece should be allowed greater leeway after the fact in meeting its fiscal targets. |
| Second, it’s time for the leaders of the euro zone to address the problem of large and sustained trade imbalances (either surpluses or deficits), which, in a fixed-exchange-rate system like the euro zone, impose significant costs and risks. For example, the Stability and Growth Pact, which imposes rules and penalties with the goal of limiting fiscal deficits, could be extended to reference trade imbalances as well. Simply recognizing officially that creditor as well as debtor countries have an obligation to adjust over time (through fiscal and structural measures, for example) would be an important step in the right direction. | Second, it’s time for the leaders of the euro zone to address the problem of large and sustained trade imbalances (either surpluses or deficits), which, in a fixed-exchange-rate system like the euro zone, impose significant costs and risks. For example, the Stability and Growth Pact, which imposes rules and penalties with the goal of limiting fiscal deficits, could be extended to reference trade imbalances as well. Simply recognizing officially that creditor as well as debtor countries have an obligation to adjust over time (through fiscal and structural measures, for example) would be an important step in the right direction. |
| The full version is here: | The full version is here: |
| Greece and Europe: Is Europe holding up its end of the bargain? | Greece and Europe: Is Europe holding up its end of the bargain? |
| 4.59pm BST16:59 | 4.59pm BST16:59 |
| Elsewhere in Athens of course, fires are raging. Here is a video showing emergency workers battling the blazes: | Elsewhere in Athens of course, fires are raging. Here is a video showing emergency workers battling the blazes: |
| Dozens of residents have been forced to leaves their houses as at least 80 fire engines and three aircraft try to stop the spread of the flames. | Dozens of residents have been forced to leaves their houses as at least 80 fire engines and three aircraft try to stop the spread of the flames. |
| MegaTV has confirmed the report that one person has died, said to be a tourist in Lakonia, affectec by respiratory problems from the thick smoke in the area. | MegaTV has confirmed the report that one person has died, said to be a tourist in Lakonia, affectec by respiratory problems from the thick smoke in the area. |
| Updated at 5.03pm BST | Updated at 5.03pm BST |
| 4.50pm BST16:50 | 4.50pm BST16:50 |
| Ahead of the reshuffle being announced, the Greek prime minister had a visit from nobel prize-winning economist Joseph Stiglitz. The US economics professor is holding talks with Tsipras, as I write, says Helena. | Ahead of the reshuffle being announced, the Greek prime minister had a visit from nobel prize-winning economist Joseph Stiglitz. The US economics professor is holding talks with Tsipras, as I write, says Helena. |
| His visit has elicited wry commentary in the Greek media that perhaps he might also be offered a job in the new cabinet. Stiglitz, like many US economists, has been scathing of Europe’s handling of the crisis and its emphasis on fiscal targets being met. | His visit has elicited wry commentary in the Greek media that perhaps he might also be offered a job in the new cabinet. Stiglitz, like many US economists, has been scathing of Europe’s handling of the crisis and its emphasis on fiscal targets being met. |
| Updated at 4.50pm BST | Updated at 4.50pm BST |
| 4.42pm BST16:42 | 4.42pm BST16:42 |
| Helena Smith | Helena Smith |
| Over in Athens our correspondent Helena Smith is hearing that the reshuffle is expected to be announced “any moment.” | Over in Athens our correspondent Helena Smith is hearing that the reshuffle is expected to be announced “any moment.” |
| The cabinet shake up is expected to see at least three government ministers moved. The energy minister Panagiotis Lafazanis, the deputy social security minister Dimitris Stratoulis and the deputy defense minister Kostas Isychos are all expected to go (the latter has already resigned). | The cabinet shake up is expected to see at least three government ministers moved. The energy minister Panagiotis Lafazanis, the deputy social security minister Dimitris Stratoulis and the deputy defense minister Kostas Isychos are all expected to go (the latter has already resigned). |
| The labour minister Panos Skourletis, a close ally of prime minister Alexis Tsipras, is also expected to step down with media reports suggesting he will be replaced by his deputy the US-trained Rania Antonopoulou. The deputy finance minister Nadia Valavani, who resigned earlier this week after describing the new bailout agreement as Greece’s tombstone, will also be replaced - along, rumour has it, with the government spokesman Gavriel Sakellarides. | The labour minister Panos Skourletis, a close ally of prime minister Alexis Tsipras, is also expected to step down with media reports suggesting he will be replaced by his deputy the US-trained Rania Antonopoulou. The deputy finance minister Nadia Valavani, who resigned earlier this week after describing the new bailout agreement as Greece’s tombstone, will also be replaced - along, rumour has it, with the government spokesman Gavriel Sakellarides. |
| Tsipras is keen to show he is in control and moving fast - so much so that the new cabinet will be sworn at around 7:30 PM according to the reports. Senior cadres this afternoon told me the aim was to inject new life into the government but none underplayed the task at hand. | Tsipras is keen to show he is in control and moving fast - so much so that the new cabinet will be sworn at around 7:30 PM according to the reports. Senior cadres this afternoon told me the aim was to inject new life into the government but none underplayed the task at hand. |
| Updated at 4.49pm BST | Updated at 4.49pm BST |
| 4.25pm BST16:25 | 4.25pm BST16:25 |
| Certain to encounter more problems - Dijsselbloem | Certain to encounter more problems - Dijsselbloem |
| We’re on the right track but it will not be easy. | We’re on the right track but it will not be easy. |
| That is the message from Eurogroup president Jeroen Dijsselbloem after the way was cleared for negotiations for a third Greek bailout to begin. In a statement He said: | That is the message from Eurogroup president Jeroen Dijsselbloem after the way was cleared for negotiations for a third Greek bailout to begin. In a statement He said: |
| “This agreement offers a chance to put the Greek economy back on track. | “This agreement offers a chance to put the Greek economy back on track. |
| “It’s not going to be easy. We are certain to encounter problems in the years to come. But I believe we will be able to resolve them.” | “It’s not going to be easy. We are certain to encounter problems in the years to come. But I believe we will be able to resolve them.” |
| Updated at 4.26pm BST | Updated at 4.26pm BST |
| 4.12pm BST16:12 | 4.12pm BST16:12 |
| And here’s the Eurogroup statement as promised: | And here’s the Eurogroup statement as promised: |
| The Eurogroup welcomes the successful completion of the relevant national procedures related to the decision to grant in principle a 3-year ESM stability support to Greece, and especially the recent swift legislative steps taken by the Greek parliament as a first step towards rebuilding trust. | The Eurogroup welcomes the successful completion of the relevant national procedures related to the decision to grant in principle a 3-year ESM stability support to Greece, and especially the recent swift legislative steps taken by the Greek parliament as a first step towards rebuilding trust. |
| Following a formal decision taken by the ESM Board of Governors, the institutions were entrusted with the task of swiftly negotiating a Memorandum of Understanding (MoU) detailing the policy conditionality attached to the financial assistance facility. | Following a formal decision taken by the ESM Board of Governors, the institutions were entrusted with the task of swiftly negotiating a Memorandum of Understanding (MoU) detailing the policy conditionality attached to the financial assistance facility. |
| In line with the Euro Summit statement of 12 July, the Eurogroup discussed the issue of possible short-term bridge financing to ensure that the Greek sovereign can clear its arrears to the IMF and to the Bank of Greece and honour its debt obligations in the coming weeks. In this respect, the Eurogroup welcomes the decision of the Council to grant short-term financial assistance to Greece, using up to EUR 7.16 bn of the funds still available under the European Financial Stability Mechanism (EFSM). | In line with the Euro Summit statement of 12 July, the Eurogroup discussed the issue of possible short-term bridge financing to ensure that the Greek sovereign can clear its arrears to the IMF and to the Bank of Greece and honour its debt obligations in the coming weeks. In this respect, the Eurogroup welcomes the decision of the Council to grant short-term financial assistance to Greece, using up to EUR 7.16 bn of the funds still available under the European Financial Stability Mechanism (EFSM). |
| In this context, the Eurogroup agrees in principle to transfer the 2014 SMP equivalent profits to be held at an ECB account to ensure legally enforceable rights to protect non euro area Member States from a risk of loss resulting from an EFSM programme to Greece. This will be confirmed by a letter from the President of the Eurogroup to the ESM. The SMP profits will be exclusively used either as compensation to non-euro area Member States in case of losses or will be returned to the euro area Member States, if not needed. Should Greece fail to repay the EFSM loan, the available instruments to recover the debt and protect the Union budget will be used, confirming that the risks of not concluding swiftly the negotiations on the ESM programme remain fully with Greece. | In this context, the Eurogroup agrees in principle to transfer the 2014 SMP equivalent profits to be held at an ECB account to ensure legally enforceable rights to protect non euro area Member States from a risk of loss resulting from an EFSM programme to Greece. This will be confirmed by a letter from the President of the Eurogroup to the ESM. The SMP profits will be exclusively used either as compensation to non-euro area Member States in case of losses or will be returned to the euro area Member States, if not needed. Should Greece fail to repay the EFSM loan, the available instruments to recover the debt and protect the Union budget will be used, confirming that the risks of not concluding swiftly the negotiations on the ESM programme remain fully with Greece. |
| The Eurogroup welcomes the very constructive approach taken by the non-euro area EU Member States. The Eurogroup commits to ensure proper transparency and to strengthen cooperation with the non-euro area EU Member States. The Eurogroup confirms that all matters of general application, including the EU budget and the EFSM, are to be discussed and decided upon in the Council involving all Member States. | The Eurogroup welcomes the very constructive approach taken by the non-euro area EU Member States. The Eurogroup commits to ensure proper transparency and to strengthen cooperation with the non-euro area EU Member States. The Eurogroup confirms that all matters of general application, including the EU budget and the EFSM, are to be discussed and decided upon in the Council involving all Member States. |
| 4.05pm BST16:05 | 4.05pm BST16:05 |
| The Greek cabinet reshuffle could come in the next few hours, local media are now reporting. | The Greek cabinet reshuffle could come in the next few hours, local media are now reporting. |
| 3.25pm BST15:25 | 3.25pm BST15:25 |
| There could be problems if the loan runs out before a new deal is reached, my colleague Jennifer Rankin points out: | There could be problems if the loan runs out before a new deal is reached, my colleague Jennifer Rankin points out: |
| If #Greece does need more bridge finance, will be harder to use #EFSM again. More pressure on eurozone to offer loans if ESM talks drag. | If #Greece does need more bridge finance, will be harder to use #EFSM again. More pressure on eurozone to offer loans if ESM talks drag. |
| 3.20pm BST15:20 | 3.20pm BST15:20 |
| And another development: | And another development: |
| At presser @VDombrovskis confirms #Greece bailout talks move back to Athens. Goodbye Brussels Group, hello troika. | At presser @VDombrovskis confirms #Greece bailout talks move back to Athens. Goodbye Brussels Group, hello troika. |
| 3.11pm BST15:11 | 3.11pm BST15:11 |
| Here’s Finland’s finance minister: | Here’s Finland’s finance minister: |
| ESM Board of Government and #Eurogroup conf call over. Official decisions imminent. We turn a page and move on. #Eurocrisis | ESM Board of Government and #Eurogroup conf call over. Official decisions imminent. We turn a page and move on. #Eurocrisis |
| Updated at 3.12pm BST | Updated at 3.12pm BST |
| 3.08pm BST15:08 | 3.08pm BST15:08 |
| And a Eurogroup statement is expected shortly: | And a Eurogroup statement is expected shortly: |
| Call ESM has finished, also call of #Eurogroup. Outcome first call on ESM website, statement #Eurogroup will be published shortly #Greece | Call ESM has finished, also call of #Eurogroup. Outcome first call on ESM website, statement #Eurogroup will be published shortly #Greece |
| Updated at 3.10pm BST | Updated at 3.10pm BST |
| 3.07pm BST15:07 | 3.07pm BST15:07 |
| And here is a statement from the European Stability Mechanism indicating that negotiations can now officially begin: | And here is a statement from the European Stability Mechanism indicating that negotiations can now officially begin: |
| The Board of Governors of the European Stability Mechanism (ESM) approved today a decision to grant, in principle, stability support to Greece in the form of a loan programme. This decision follows the completion of national procedures that involved parliamentary approval in some of the ESM Member States. The basis for the Board of Governors’ approval was the assessment by the institutions and the proposal by ESM Managing Director Klaus Regling. | The Board of Governors of the European Stability Mechanism (ESM) approved today a decision to grant, in principle, stability support to Greece in the form of a loan programme. This decision follows the completion of national procedures that involved parliamentary approval in some of the ESM Member States. The basis for the Board of Governors’ approval was the assessment by the institutions and the proposal by ESM Managing Director Klaus Regling. |
| This in-principle decision paves the way for the institutions to negotiate a Memorandum of Understanding (MoU) detailing the agreed macroeconomic reforms, or policy conditionality, linked to the ESM financial assistance facility. Simultaneously, the ESM Managing Director will prepare a proposal for the loan contract with Greece, the Financial Assistance Facility Agreement (FFA). | This in-principle decision paves the way for the institutions to negotiate a Memorandum of Understanding (MoU) detailing the agreed macroeconomic reforms, or policy conditionality, linked to the ESM financial assistance facility. Simultaneously, the ESM Managing Director will prepare a proposal for the loan contract with Greece, the Financial Assistance Facility Agreement (FFA). |
| Once the MoU is finalised, the Board of Governors must take a further decision, involving national parliaments in some Member States, to approve the MoU as well as the FFA proposal. The European Commission must sign the MoU. Finally, the ESM Board of Directors must adopt the FFA and agree to disburse the first tranche of the loan. | Once the MoU is finalised, the Board of Governors must take a further decision, involving national parliaments in some Member States, to approve the MoU as well as the FFA proposal. The European Commission must sign the MoU. Finally, the ESM Board of Directors must adopt the FFA and agree to disburse the first tranche of the loan. |
| Klaus Regling, ESM Managing Director, said: “We welcome that the Greek government and parliament voted in favour of the reforms with a very broad majority. This has paved the way for today’s decision in principle to start negotiations on a new programme for the benefit of Greece. Let me stress that thanks to reform implementation, Greece had started to grow again in 2014, unemployment had begun to decline, and the country had regained some market access. The ESM has a remaining lending capacity of €455 billion but only a small part of this sum will be needed. The ESM stands ready to provide financial assistance when our Members fully adopt an ESM programme.” | Klaus Regling, ESM Managing Director, said: “We welcome that the Greek government and parliament voted in favour of the reforms with a very broad majority. This has paved the way for today’s decision in principle to start negotiations on a new programme for the benefit of Greece. Let me stress that thanks to reform implementation, Greece had started to grow again in 2014, unemployment had begun to decline, and the country had regained some market access. The ESM has a remaining lending capacity of €455 billion but only a small part of this sum will be needed. The ESM stands ready to provide financial assistance when our Members fully adopt an ESM programme.” |
| Updated at 3.27pm BST | Updated at 3.27pm BST |
| 3.05pm BST15:05 | 3.05pm BST15:05 |
| And here’s how German MPs voted: | And here’s how German MPs voted: |
| How they voted: list of #German MPs on #Bundestag website #Greece https://t.co/yVplfadeb7 | How they voted: list of #German MPs on #Bundestag website #Greece https://t.co/yVplfadeb7 |
| 3.02pm BST15:02 | 3.02pm BST15:02 |
| Manfred Weber, leader of the centre-right European People’s Party, the biggest bloc in the European parliament, has welcomed the various parliamentary votes backing talks for a new Greek bailout. | Manfred Weber, leader of the centre-right European People’s Party, the biggest bloc in the European parliament, has welcomed the various parliamentary votes backing talks for a new Greek bailout. |
| But he warned it was only the start of a long and difficult process (which I think we probably already knew): | But he warned it was only the start of a long and difficult process (which I think we probably already knew): |
| National parliaments are behaving responsibly. Approval votes are good news. Europe stands together. @EPPGroup #Agreekment | National parliaments are behaving responsibly. Approval votes are good news. Europe stands together. @EPPGroup #Agreekment |
| But this is only the beginning of a long & complicated negotiation process. The Greek government has destroyed a lot of trust. #Greece | But this is only the beginning of a long & complicated negotiation process. The Greek government has destroyed a lot of trust. #Greece |
| 3.02pm BST15:02 | 3.02pm BST15:02 |
| But despite the loan agreement, and contrary to what had been suggested earlier, there are now reports that Greek banks will NOT now open on Monday. | But despite the loan agreement, and contrary to what had been suggested earlier, there are now reports that Greek banks will NOT now open on Monday. |
| 2.57pm BST14:57 | 2.57pm BST14:57 |
| More from Dombrovskis: | More from Dombrovskis: |
| The Greek gov has changed its attitude so this makes us hopeful of (bailout) agreement in a couple of weeks, says @VDombrovskis | The Greek gov has changed its attitude so this makes us hopeful of (bailout) agreement in a couple of weeks, says @VDombrovskis |
| Enough time to reach agreement on ESM bailout by second half of August, says @VDombrovskis, suggests more bridge finance won't be needed. | Enough time to reach agreement on ESM bailout by second half of August, says @VDombrovskis, suggests more bridge finance won't be needed. |
| The new #Greece debt crisis deadline is 20 Aug. Eurozone banking on ESM €86bn bailout complete by then, hoping no more bridge financing. | The new #Greece debt crisis deadline is 20 Aug. Eurozone banking on ESM €86bn bailout complete by then, hoping no more bridge financing. |
| Updated at 3.02pm BST | Updated at 3.02pm BST |
| 2.47pm BST14:47 | 2.47pm BST14:47 |
| EC vice president Valdis Dombrovskis said he hoped a three year bailout programme could be agreed with Greece within a few weeks. | EC vice president Valdis Dombrovskis said he hoped a three year bailout programme could be agreed with Greece within a few weeks. |
| The way is clear now Greece’s key eurozone partners have voted in favour of starting negotiations on a new bailout using the European Stability Mechanism. | The way is clear now Greece’s key eurozone partners have voted in favour of starting negotiations on a new bailout using the European Stability Mechanism. |
| Dombrovskis said a debt restructuring would be part of the talks. He told a press conference: | Dombrovskis said a debt restructuring would be part of the talks. He told a press conference: |
| On debt I would expect this being a part of the negotiations, because this is also something the IMF insists on. | On debt I would expect this being a part of the negotiations, because this is also something the IMF insists on. |
| There is also a clear conclusion of the Euro Summit that the IMF should be a part of the third programme. | There is also a clear conclusion of the Euro Summit that the IMF should be a part of the third programme. |
| (Quotes courtesy of Reuters) | (Quotes courtesy of Reuters) |
| The comments came as a €7bn bridging loan from the European Financial Stability Mechanism was agreed. | The comments came as a €7bn bridging loan from the European Financial Stability Mechanism was agreed. |
| @YiannisMouzakis the whole thing makes my head spin, but I presume Greece repays the EFSM with ESM funds from the new bailout... | @YiannisMouzakis the whole thing makes my head spin, but I presume Greece repays the EFSM with ESM funds from the new bailout... |
| 2.35pm BST14:35 | 2.35pm BST14:35 |
| Once the Greek’s receive the €7bn bridging loan, they can pay the €3.5bn due to the ECB on Monday as well as clearing the €1.5bn arrears it owes to the International Monetary Fund. The IMF would not be involved in any new bailout without these payments being cleared. | Once the Greek’s receive the €7bn bridging loan, they can pay the €3.5bn due to the ECB on Monday as well as clearing the €1.5bn arrears it owes to the International Monetary Fund. The IMF would not be involved in any new bailout without these payments being cleared. |
| 2.31pm BST14:31 | 2.31pm BST14:31 |
| And here’s the official statement from the European Council: | And here’s the official statement from the European Council: |
| On 17 July 2015, the Council adopted a decision granting up to €7.16bn in short term financial assistance to Greece under the European Financial Stabilisation Mechanism (EFSM). | On 17 July 2015, the Council adopted a decision granting up to €7.16bn in short term financial assistance to Greece under the European Financial Stabilisation Mechanism (EFSM). |
| The loan will have a maximum maturity of three months and will be disbursed in up to two instalments. It will allow Greece to clear its arrears with the IMF and the Bank of Greece and to repay the ECB, until Greece would start receiving financing under a new programme from the European Stability Mechanism (ESM). | The loan will have a maximum maturity of three months and will be disbursed in up to two instalments. It will allow Greece to clear its arrears with the IMF and the Bank of Greece and to repay the ECB, until Greece would start receiving financing under a new programme from the European Stability Mechanism (ESM). |
| Council approves €7bn bridge loan to #Greece http://t.co/4SUqywm5RH | Council approves €7bn bridge loan to #Greece http://t.co/4SUqywm5RH |
| And here’s the relevant paragraph addressing the concerns of the UK and other non-eurozone members about being left carrying the can if Greece did not repay the loan: | And here’s the relevant paragraph addressing the concerns of the UK and other non-eurozone members about being left carrying the can if Greece did not repay the loan: |
| A mechanism has been designed so as to ensure that non-euro area member states do not carry any risk. Under the decision, the exposure of non-euro area member states will be fully guaranteed by liquid collateral under legally binding arrangements. If Greece were unable repay the loan in accordance with its terms, any liabilities incurred by non-euro area member states would be immediately reimbursed. | A mechanism has been designed so as to ensure that non-euro area member states do not carry any risk. Under the decision, the exposure of non-euro area member states will be fully guaranteed by liquid collateral under legally binding arrangements. If Greece were unable repay the loan in accordance with its terms, any liabilities incurred by non-euro area member states would be immediately reimbursed. |
| Updated at 3.07pm BST | Updated at 3.07pm BST |
| 2.23pm BST14:23 | 2.23pm BST14:23 |
| Bridging loan agreed - EU's Dombrovskis | Bridging loan agreed - EU's Dombrovskis |
| It looks like the €7.6bn bridging loan has been agreed, with the money due to reach Greece on Mondayi: | It looks like the €7.6bn bridging loan has been agreed, with the money due to reach Greece on Mondayi: |
| #EU's Dombrovskis says there is an agreement for EFSM bridge financing. Funds will reach #Greece by Monday. | #EU's Dombrovskis says there is an agreement for EFSM bridge financing. Funds will reach #Greece by Monday. |
| #EU's Dombrovskis confirms August timetable of ESM talks as tweeted by @StefanLeifert yesterday. | #EU's Dombrovskis confirms August timetable of ESM talks as tweeted by @StefanLeifert yesterday. |
| .@VDombrovskis: debt relief discussion to be part of talks of 3rd programme, coz IMF's demand and fund must be part of programme, #EUCO said | .@VDombrovskis: debt relief discussion to be part of talks of 3rd programme, coz IMF's demand and fund must be part of programme, #EUCO said |
| Updated at 2.25pm BST | Updated at 2.25pm BST |
| 1.54pm BST13:54 | 1.54pm BST13:54 |
| Germany should leave euro, not Greece - ex-IMF executive | Germany should leave euro, not Greece - ex-IMF executive |
| How about Dexit rather than Grexit? | How about Dexit rather than Grexit? |
| A former director at the International Monetary Fund has argued that it might be better for Germany, rather than Greece, to leave the eurozone. Ashoka Mody, a visiting professor at Princeton University and ex-deputy director at the IMF’s research and European departments, wrote: | A former director at the International Monetary Fund has argued that it might be better for Germany, rather than Greece, to leave the eurozone. Ashoka Mody, a visiting professor at Princeton University and ex-deputy director at the IMF’s research and European departments, wrote: |
| The latest round of wrangling between Greece and its European creditors has demonstrated yet again that countries with such disparate economies should never have entered a currency union. It would be better for all involved, though, if Germany rather than Greece were the first to exit... | The latest round of wrangling between Greece and its European creditors has demonstrated yet again that countries with such disparate economies should never have entered a currency union. It would be better for all involved, though, if Germany rather than Greece were the first to exit... |
| A German return to the deutsche mark would cause the value of the euro to fall immediately, giving countries in Europe’s periphery a much-needed boost in competitiveness. Italy and Portugal have about the same gross domestic product today as when the euro was introduced, and the Greek economy, having briefly soared, is now in danger of falling below its starting point. A weaker euro would give them a chance to jump-start growth. If, as would be likely, the Netherlands, Belgium, Austria and Finland followed Germany’s lead, perhaps to form a new currency bloc, the euro would depreciate even further. | A German return to the deutsche mark would cause the value of the euro to fall immediately, giving countries in Europe’s periphery a much-needed boost in competitiveness. Italy and Portugal have about the same gross domestic product today as when the euro was introduced, and the Greek economy, having briefly soared, is now in danger of falling below its starting point. A weaker euro would give them a chance to jump-start growth. If, as would be likely, the Netherlands, Belgium, Austria and Finland followed Germany’s lead, perhaps to form a new currency bloc, the euro would depreciate even further. |
| The disruption from a German exit would be minor. Because a deutsche mark would buy more goods and services in Europe (and in the rest of the world) than does a euro today, the Germans would become richer in one stroke. Germany’s assets abroad would be worth less in terms of the pricier deutsche marks, but German debts would be easier to repay... | The disruption from a German exit would be minor. Because a deutsche mark would buy more goods and services in Europe (and in the rest of the world) than does a euro today, the Germans would become richer in one stroke. Germany’s assets abroad would be worth less in terms of the pricier deutsche marks, but German debts would be easier to repay... |
| Perhaps the greatest gain would be political. Germany relishes the role of a hegemon in Europe, but it has proven unwilling to bear the cost. By playing the role of bully with a moral veneer, it is doing the region a disservice. Rather than building “an ever closer union” in Europe, the Germans are endangering its delicate fabric. To stay close, Europe’s nations may need to loosen the ties that bind them so tightly. | Perhaps the greatest gain would be political. Germany relishes the role of a hegemon in Europe, but it has proven unwilling to bear the cost. By playing the role of bully with a moral veneer, it is doing the region a disservice. Rather than building “an ever closer union” in Europe, the Germans are endangering its delicate fabric. To stay close, Europe’s nations may need to loosen the ties that bind them so tightly. |
| The full piece is here: | The full piece is here: |
| Germany, Not Greece, Should Exit the Euro | Germany, Not Greece, Should Exit the Euro |
| Updated at 5.45pm BST | Updated at 5.45pm BST |
| 1.48pm BST13:48 | 1.48pm BST13:48 |
| There are reports Tsipras may delay a reshuffle of his cabinet because of the emergency situation caused by the wildfires. Reuters reports: | There are reports Tsipras may delay a reshuffle of his cabinet because of the emergency situation caused by the wildfires. Reuters reports: |
| Dozens of Athens residents fled their homes on Friday as wildfires fanned by strong winds and high temperatures burned through woodland around the Greek capital, sending clouds of smoke billowing over the city. | Dozens of Athens residents fled their homes on Friday as wildfires fanned by strong winds and high temperatures burned through woodland around the Greek capital, sending clouds of smoke billowing over the city. |
| The fires are compounding the problems facing the government of Prime Minister Alexis Tsipras, which is struggling to obtain a fresh bailout from foreign creditors. | The fires are compounding the problems facing the government of Prime Minister Alexis Tsipras, which is struggling to obtain a fresh bailout from foreign creditors. |
| Tsipras, who may delay a reshuffle of his cabinet - expected on Friday - because of the emergency, urged calm as more than 80 firefighters with 18 fire engines and three aircraft battled the flames, which a Reuters photographer said were near homes. | Tsipras, who may delay a reshuffle of his cabinet - expected on Friday - because of the emergency, urged calm as more than 80 firefighters with 18 fire engines and three aircraft battled the flames, which a Reuters photographer said were near homes. |
| Meanwhile it has been reported that one person has died as a result of the fires. | Meanwhile it has been reported that one person has died as a result of the fires. |
| Updated at 2.10pm BST | Updated at 2.10pm BST |
| 1.43pm BST13:43 | 1.43pm BST13:43 |
| As the fires continue, prime minister Alex Tsipras has been briefed on the situation: | As the fires continue, prime minister Alex Tsipras has been briefed on the situation: |
| Defence ministry release photos of PM #Tsipras being briefed at National Operations Centre on #GreeceOnFire fronts pic.twitter.com/kd5pdE27vN | Defence ministry release photos of PM #Tsipras being briefed at National Operations Centre on #GreeceOnFire fronts pic.twitter.com/kd5pdE27vN |
| Updated at 3.03pm BST | Updated at 3.03pm BST |
| 1.34pm BST13:34 | 1.34pm BST13:34 |
| The Latvian parliament has also reportedly given the green light to begin negotiations on a third Greek bailout. | The Latvian parliament has also reportedly given the green light to begin negotiations on a third Greek bailout. |
| 1.33pm BST13:33 | 1.33pm BST13:33 |
| 50 cdu/csu rebels for Merkel. 38 Syriza rebels for Tsipras. Parliamentary objections containable, but warning signs clearly there | 50 cdu/csu rebels for Merkel. 38 Syriza rebels for Tsipras. Parliamentary objections containable, but warning signs clearly there |
| 1.32pm BST13:32 | 1.32pm BST13:32 |
| More on the bridging loan: | More on the bridging loan: |
| EFSM loan to Greece, safeguards for non-euros/UK. At later date EC promises to amend EFSM regulation on same basis pic.twitter.com/1VKe8UXxv1 | EFSM loan to Greece, safeguards for non-euros/UK. At later date EC promises to amend EFSM regulation on same basis pic.twitter.com/1VKe8UXxv1 |
| And Jeroen Dijesselbloem’s spokesman has given some timings: | And Jeroen Dijesselbloem’s spokesman has given some timings: |
| Call ESM Board of Governors today at 3pm, followed by Eurogroup teleconference #Greece | Call ESM Board of Governors today at 3pm, followed by Eurogroup teleconference #Greece |
| Updated at 1.39pm BST | Updated at 1.39pm BST |
| 1.18pm BST13:18 | 1.18pm BST13:18 |
| Meanwhile Greek energy minister Panagiotis Lafazanis, one of the Syriza rebels who voted against the bailout deal on Wednesday, is widely expected to leave the cabinet in the forthcoming reshuffle. | Meanwhile Greek energy minister Panagiotis Lafazanis, one of the Syriza rebels who voted against the bailout deal on Wednesday, is widely expected to leave the cabinet in the forthcoming reshuffle. |
| Earlier Reuters reported his replacement as energy minister could be labour minister Panos Skourletis. | Earlier Reuters reported his replacement as energy minister could be labour minister Panos Skourletis. |
| Still in his job at the moment Lafazanis has apparently been visiting the scene of the fires, with not entirely favourable results: | Still in his job at the moment Lafazanis has apparently been visiting the scene of the fires, with not entirely favourable results: |
| Energy Min Lafazanis visits Athens area hit by fires. Local residents yell at him, asking "what the hell u doing here?" #Greece | Energy Min Lafazanis visits Athens area hit by fires. Local residents yell at him, asking "what the hell u doing here?" #Greece |
| 1.04pm BST13:04 | 1.04pm BST13:04 |
| 60 CDU/CSU MPs rebelled | 60 CDU/CSU MPs rebelled |
| We have the answer: | We have the answer: |
| fifty | fifty |
| sixty members of Angela Merkel’s CDU/CSU bloc have defied their chancellor and voted against beginning talks on a third bailout. | sixty members of Angela Merkel’s CDU/CSU bloc have defied their chancellor and voted against beginning talks on a third bailout. |
| They voted alongside MPs from the left-wing Linke party -- who had earlier savaged the bailout plan for its lack of concrete debt relief. | They voted alongside MPs from the left-wing Linke party -- who had earlier savaged the bailout plan for its lack of concrete debt relief. |
| That is a rather bigger rebellion than in February, when 29 CDU/CSU MPs rejected giving Greece a four-month extension to its old bailout. | That is a rather bigger rebellion than in February, when 29 CDU/CSU MPs rejected giving Greece a four-month extension to its old bailout. |
| (corrected from earlier - more rebels than we initially thought) | (corrected from earlier - more rebels than we initially thought) |
| Updated at 3.41pm BST | Updated at 3.41pm BST |
| 1.01pm BST13:01 | 1.01pm BST13:01 |
| Correction: of 598 votes placed, Ja: 439, Nein: 119, Abstentions: 40 | Correction: of 598 votes placed, Ja: 439, Nein: 119, Abstentions: 40 |
| Updated at 1.32pm BST | Updated at 1.32pm BST |
| 12.58pm BST12:58 | 12.58pm BST12:58 |
| German parliament approves new Greek bailout talks | German parliament approves new Greek bailout talks |
| The Bundestag has voted in favour of starting negotiations with Greece over a third bailout. | The Bundestag has voted in favour of starting negotiations with Greece over a third bailout. |
| 439 lawmakers voted in favour, and 119 opposed the move, with 40 abstentions. | 439 lawmakers voted in favour, and 119 opposed the move, with 40 abstentions. |
| #Bundestag vote on third Greek bailout: 439 yes, 119 no, 40 abstentions | #Bundestag vote on third Greek bailout: 439 yes, 119 no, 40 abstentions |
| Now the big question.... how many CDU/CSU MPs rebelled? | Now the big question.... how many CDU/CSU MPs rebelled? |
| 12.52pm BST12:52 | 12.52pm BST12:52 |
| Many people, including loyal reader Kizbot, point out that while Germany votes, Greece burns. | Many people, including loyal reader Kizbot, point out that while Germany votes, Greece burns. |
| Large wildfires are now burning in Peloponnese, Athens and Evia, with reports that some residents on Mount Hymettus are fleeing their homes. | Large wildfires are now burning in Peloponnese, Athens and Evia, with reports that some residents on Mount Hymettus are fleeing their homes. |
| Athens fire. Panoramic. #Greece #GreeceOnFire. pic via @ThePressProject pic.twitter.com/sMZrvW06qz | Athens fire. Panoramic. #Greece #GreeceOnFire. pic via @ThePressProject pic.twitter.com/sMZrvW06qz |
| Greek officials have requested assistance from France and Italy to combat fires, Skai reports #Greece | Greek officials have requested assistance from France and Italy to combat fires, Skai reports #Greece |
| Updated at 12.53pm BST | Updated at 12.53pm BST |
| 12.44pm BST12:44 | 12.44pm BST12:44 |
| MPs crowd round the ballot box to place their votes in #Bundestag debate on #Greece pic.twitter.com/2jQQnFwMrT | MPs crowd round the ballot box to place their votes in #Bundestag debate on #Greece pic.twitter.com/2jQQnFwMrT |
| 12.39pm BST12:39 | 12.39pm BST12:39 |
| Angela Merkel has voted, in the throng: | Angela Merkel has voted, in the throng: |
| 12.38pm BST12:38 | 12.38pm BST12:38 |
| Updated at 12.39pm BST | Updated at 12.39pm BST |
| 12.35pm BST12:35 | 12.35pm BST12:35 |
| Bundestag votes on third Greek package | Bundestag votes on third Greek package |
| The debate is over, and the Bundestag has begun voting on whether to begin talks with Greece on a third bailout package. | The debate is over, and the Bundestag has begun voting on whether to begin talks with Greece on a third bailout package. |
| MPs are forming an orderly queue to place their vote in the ballot box. | MPs are forming an orderly queue to place their vote in the ballot box. |
| 12.33pm BST12:33 | 12.33pm BST12:33 |
| Ralph Brinkhaus, a CDU member, has argued that Grexit could still happen if Greece cannot reform. | Ralph Brinkhaus, a CDU member, has argued that Grexit could still happen if Greece cannot reform. |
| Brinkhaus (CDU/CSU): We can't answer all Europe's problems w/more institutions & more integration. We must really debate abt future of EU. | Brinkhaus (CDU/CSU): We can't answer all Europe's problems w/more institutions & more integration. We must really debate abt future of EU. |
| 12.28pm BST12:28 | 12.28pm BST12:28 |
| 12.14pm BST12:14 | 12.14pm BST12:14 |
| The Bundestag is now hearing from one of CDU MPs who plans to reject talks with Greece about a third bailout: | The Bundestag is now hearing from one of CDU MPs who plans to reject talks with Greece about a third bailout: |
| At podium, Klaus Peter Willsch, one of the #CDU rebels "However much water you put into a bottomless barrel it will never fill up" #Greece | At podium, Klaus Peter Willsch, one of the #CDU rebels "However much water you put into a bottomless barrel it will never fill up" #Greece |
| 12.05pm BST12:05 | 12.05pm BST12:05 |
| Greek banks to open on Monday - minister | Greek banks to open on Monday - minister |
| Greek banks will open on Monday, according to alternative finance minister Dimitris Mardas. | Greek banks will open on Monday, according to alternative finance minister Dimitris Mardas. |
| The €60 daily cash restriction will remain in place, reports Greek news agency ANA-MPA, but Mardas said banks will be able to offer a wider range of services, such as money transfer from one account to another. | The €60 daily cash restriction will remain in place, reports Greek news agency ANA-MPA, but Mardas said banks will be able to offer a wider range of services, such as money transfer from one account to another. |
| 11.57am BST11:57 | 11.57am BST11:57 |
| Austrian parliament backs talks on third Greek bailout | Austrian parliament backs talks on third Greek bailout |
| Newsflash from Vienna -- the Austrian parliament has voted in favour of opening talks with Greece on the new, three-year bailout. | Newsflash from Vienna -- the Austrian parliament has voted in favour of opening talks with Greece on the new, three-year bailout. |
| 11.56am BST11:56 | 11.56am BST11:56 |
| One of the more digging remarks of #Bundestag debate as @SWagenknecht refers to #Schäuble as the "cutback Taliban" https://t.co/QmWuxtgyni | One of the more digging remarks of #Bundestag debate as @SWagenknecht refers to #Schäuble as the "cutback Taliban" https://t.co/QmWuxtgyni |
| 11.46am BST11:46 | 11.46am BST11:46 |
| Many in the City are unconvinced that a third Greek bailout will succeed. | Many in the City are unconvinced that a third Greek bailout will succeed. |
| Ipek Ozkardeskaya of London Capital Group explains: | Ipek Ozkardeskaya of London Capital Group explains: |
| Although the very much expected Greece-EU deal is almost sealed, the market remains sceptical on Greece’s future in the Eurozone. | Although the very much expected Greece-EU deal is almost sealed, the market remains sceptical on Greece’s future in the Eurozone. |
| The bailout package, as agreed, is too strict to fuel the growth engine in Greece. The €86bn aid package is going to be a financial relief for couple of more years. In the absence of significant aid to investment, we will be discussing the Grexit once that money would have melted. | The bailout package, as agreed, is too strict to fuel the growth engine in Greece. The €86bn aid package is going to be a financial relief for couple of more years. In the absence of significant aid to investment, we will be discussing the Grexit once that money would have melted. |
| 11.45am BST11:45 | 11.45am BST11:45 |
| Not all German MPs are best pleased with their finance minister: | Not all German MPs are best pleased with their finance minister: |
| #Germany SPD's Schneider attacks FinMIn Schäuble's 'timeout' Grexit plan: "More than irritating". #Bundestag #Greece | #Germany SPD's Schneider attacks FinMIn Schäuble's 'timeout' Grexit plan: "More than irritating". #Bundestag #Greece |
| 11.42am BST11:42 | 11.42am BST11:42 |
| Klaus Ernst of #Linke loudly denounces #SPD in #Bundestag, spks of how it contributes to blackmail of #Greece & robbing it of its solidarity | Klaus Ernst of #Linke loudly denounces #SPD in #Bundestag, spks of how it contributes to blackmail of #Greece & robbing it of its solidarity |
| 11.34am BST11:34 | 11.34am BST11:34 |
| Half an hour to go until the German parliament votes. MPs are still offering opinions, but we’ve heard from the main players. | Half an hour to go until the German parliament votes. MPs are still offering opinions, but we’ve heard from the main players. |
| The rush of CDU/CSU MPs to defend Schäuble is a vivid proof that the German FinMin is on the defensive. #Germany #Greece | The rush of CDU/CSU MPs to defend Schäuble is a vivid proof that the German FinMin is on the defensive. #Germany #Greece |
| 11.31am BST11:31 | 11.31am BST11:31 |
| Back in the Bundestag, the parliamentary group leader of Angela Merkel’s CDU party, Volker Kauder, has backed the chancellor: | Back in the Bundestag, the parliamentary group leader of Angela Merkel’s CDU party, Volker Kauder, has backed the chancellor: |
| Kauder, MP CDU/CSU: We knew that entrance of Greece in €, it was also a political decision, because we knew that the reqremnts weren't best | Kauder, MP CDU/CSU: We knew that entrance of Greece in €, it was also a political decision, because we knew that the reqremnts weren't best |
| CDU/CSU faction leader Kauder says today's vote is not primarily about #Greece, but about Europe. #bailout | CDU/CSU faction leader Kauder says today's vote is not primarily about #Greece, but about Europe. #bailout |
| 11.18am BST11:18 | 11.18am BST11:18 |
| On top of everything else, Greece now has to deal with a large fire breaking out on the outskirts of the capital: | On top of everything else, Greece now has to deal with a large fire breaking out on the outskirts of the capital: |
| Fire breaks out on one of the mountains surrounding Athens, Athenians watching the Bundestag on TV | Fire breaks out on one of the mountains surrounding Athens, Athenians watching the Bundestag on TV |
| Fire in Athens. Literally. Ymittos Mt, Kareas. Close to residential areas. Spreading. Pic by @torosnegros pic.twitter.com/rTANiJBpXB | Fire in Athens. Literally. Ymittos Mt, Kareas. Close to residential areas. Spreading. Pic by @torosnegros pic.twitter.com/rTANiJBpXB |
| photo of hymmetus fire taken from syntagma office building by my FB friend lilian @triosdim pic.twitter.com/Qh8mTgPsHf | photo of hymmetus fire taken from syntagma office building by my FB friend lilian @triosdim pic.twitter.com/Qh8mTgPsHf |
| 11.09am BST11:09 | 11.09am BST11:09 |
| *ZING* | *ZING* |
| SPD's Oppermann gets laugh out of #Merkel when says of Wagenknecht "If I listen to you for 6 mins, #Tsipras suddenly doesn't seem so bad" | SPD's Oppermann gets laugh out of #Merkel when says of Wagenknecht "If I listen to you for 6 mins, #Tsipras suddenly doesn't seem so bad" |
| 11.08am BST11:08 | 11.08am BST11:08 |
| The debate continues, with Thomas Opperman, the chairman of the Social Democratic Party pledging that only two of his MPs will oppose the plan. | The debate continues, with Thomas Opperman, the chairman of the Social Democratic Party pledging that only two of his MPs will oppose the plan. |
| Opperman offers Schäuble some support, saying it was right to prepare alternative plans: | Opperman offers Schäuble some support, saying it was right to prepare alternative plans: |
| #Opperman to #Schäuble: The way you are vilified in the media and social media is awful and unacceptable. It was right to have a plan B. | #Opperman to #Schäuble: The way you are vilified in the media and social media is awful and unacceptable. It was right to have a plan B. |
| (Plan B means Schäuble’s temporary Grexit escapade, which Merkel has already admitted lacked support at last Sunday’s euro summit) | (Plan B means Schäuble’s temporary Grexit escapade, which Merkel has already admitted lacked support at last Sunday’s euro summit) |
| 11.05am BST11:05 | 11.05am BST11:05 |
| Mystery solved: | Mystery solved: |
| Schäuble's #Romania remark was dig at Gabriel Romania has Soc Dem gov. Gabriel had made dig at #Schäuble comparing him to Hungarys far-right | Schäuble's #Romania remark was dig at Gabriel Romania has Soc Dem gov. Gabriel had made dig at #Schäuble comparing him to Hungarys far-right |
| 11.02am BST11:02 | 11.02am BST11:02 |
| Ouch: | Ouch: |
| Referring to #Schäuble's #Grexit plans, #Wagenknecht says: "it's as if you wanted to make a new home for yrself in the ruins of the #AfD" | Referring to #Schäuble's #Grexit plans, #Wagenknecht says: "it's as if you wanted to make a new home for yrself in the ruins of the #AfD" |
| That’s Alternative for Deutschland - the country’s eurosceptic party. | That’s Alternative for Deutschland - the country’s eurosceptic party. |
| 10.48am BST10:48 | 10.48am BST10:48 |
| Sahra Wagenknecht of far-left #Linke (compared to Frida Kahlo & partner of Oskar Lafontaine) takes to the floor & is sizzling with anger | Sahra Wagenknecht of far-left #Linke (compared to Frida Kahlo & partner of Oskar Lafontaine) takes to the floor & is sizzling with anger |
| 10.48am BST10:48 | 10.48am BST10:48 |
| Sahra Wagenknecht of Die Linke, the left-wing party, follows Schäuble. | Sahra Wagenknecht of Die Linke, the left-wing party, follows Schäuble. |
| She’s arguing that that Greek deal is badly flawed, because it doesn’t provide the debt relief that Greece desperately needs. We’ll be back here soon enough once it fails, she adds, and Schäuble knows that too. | She’s arguing that that Greek deal is badly flawed, because it doesn’t provide the debt relief that Greece desperately needs. We’ll be back here soon enough once it fails, she adds, and Schäuble knows that too. |
| For Die Linke Sahra Wagenknecht: IMF estimates that Greek debt soon 200% of GDP. This package will be a drop in the ocean. | For Die Linke Sahra Wagenknecht: IMF estimates that Greek debt soon 200% of GDP. This package will be a drop in the ocean. |
| 10.45am BST10:45 | 10.45am BST10:45 |
| Wolfgang Schäuble ends his speech by asking the Bundestag to vote in favour of negotiating a third deal for Greece. | Wolfgang Schäuble ends his speech by asking the Bundestag to vote in favour of negotiating a third deal for Greece. |
| It’s a decision between our hearts, and our heads - but we must try to make this new package work, he concludes. | It’s a decision between our hearts, and our heads - but we must try to make this new package work, he concludes. |
| #Schauble pleads in what is quite a fiery speech for MPs to vote in favour of negotiating 3rd bailout saying "after we can see where we are" | #Schauble pleads in what is quite a fiery speech for MPs to vote in favour of negotiating 3rd bailout saying "after we can see where we are" |
| That's the end of #Schäuble's speech Btw he's been in the #Bundestag since 1972 and survived an assassination attack in 1990. Wife economist | That's the end of #Schäuble's speech Btw he's been in the #Bundestag since 1972 and survived an assassination attack in 1990. Wife economist |
| 10.42am BST10:42 | 10.42am BST10:42 |
| Schäuble clearly believes Greece needs debt relief, showing his own doubts about the chances of this new bailout deal working: | Schäuble clearly believes Greece needs debt relief, showing his own doubts about the chances of this new bailout deal working: |
| #Schäuble: Haircut illegal in EZ, and without the haircut, this 3rd programme will be even harder for #Greece than the previous ones. | #Schäuble: Haircut illegal in EZ, and without the haircut, this 3rd programme will be even harder for #Greece than the previous ones. |
| #Schäuble: Given that haircut is not a possibiltiy under EZ law - we had to find another way that is realisitic. #Greece | #Schäuble: Given that haircut is not a possibiltiy under EZ law - we had to find another way that is realisitic. #Greece |
| 10.39am BST10:39 | 10.39am BST10:39 |
| Schäuble is going to leave a dent in that lectern if he keeps thumping it.... | Schäuble is going to leave a dent in that lectern if he keeps thumping it.... |
| Schaeuble's tone is of a frothing coach yelling at his players in a half-time pep talk. He is about to say "now go out and win this thing" | Schaeuble's tone is of a frothing coach yelling at his players in a half-time pep talk. He is about to say "now go out and win this thing" |
| 10.30am BST10:30 | 10.30am BST10:30 |
| #Schäuble now up. Starts by talking about origins of the #Euro. Seems to be exercise in restoring his reputation | #Schäuble now up. Starts by talking about origins of the #Euro. Seems to be exercise in restoring his reputation |
| Schäuble: no one is as convinced that Greece needs help as me He's quite a mumbler not known for his sound bites. off on a tangent. Romania? | Schäuble: no one is as convinced that Greece needs help as me He's quite a mumbler not known for his sound bites. off on a tangent. Romania? |
| Schäuble: "This is a last attempt" - we need to to help #Greece find it's way back to the markets | Schäuble: "This is a last attempt" - we need to to help #Greece find it's way back to the markets |
| 10.28am BST10:28 | 10.28am BST10:28 |
| Schäuble: We all agree Greece needs help | Schäuble: We all agree Greece needs help |
| Speaking rather passionately at times, Schäuble is asking MPs to support the bailout plan. | Speaking rather passionately at times, Schäuble is asking MPs to support the bailout plan. |
| We all know that Greece needs help. | We all know that Greece needs help. |
| And thumping the lectern, Schäuble warns that this is the last attempt to deal with the “difficult task” of Greece. | And thumping the lectern, Schäuble warns that this is the last attempt to deal with the “difficult task” of Greece. |
| We must help #Greece & keep #Europe together - says @Wolf_Schauble in #Bundestag @France24_en pic.twitter.com/EsecOVBIrw | We must help #Greece & keep #Europe together - says @Wolf_Schauble in #Bundestag @France24_en pic.twitter.com/EsecOVBIrw |
| Updated at 10.28am BST | Updated at 10.28am BST |
| 10.21am BST10:21 | 10.21am BST10:21 |
| It’s Wolfgang Schäuble’s turn to speak.... | It’s Wolfgang Schäuble’s turn to speak.... |
| 10.16am BST10:16 | 10.16am BST10:16 |
| Göring-Eckardt doesn’t share Angela Merkel’s appreciation for Schäuble’s tireless work..... | Göring-Eckardt doesn’t share Angela Merkel’s appreciation for Schäuble’s tireless work..... |
| German Green´s chairwoman Göring-Eckardt: "Mr. Schäuble, that you still insist on being right about a #Grexit, destroys trust in Europe!" | German Green´s chairwoman Göring-Eckardt: "Mr. Schäuble, that you still insist on being right about a #Grexit, destroys trust in Europe!" |
| 10.15am BST10:15 | 10.15am BST10:15 |
| Reminder, you can watch the debate here. | Reminder, you can watch the debate here. |
| Katrin Göring-Eckardt of the Green party is now speaking, and criticising Merkel for taking such a hard line with Greece. She speaks of a Europe where the strong push the weak around. | Katrin Göring-Eckardt of the Green party is now speaking, and criticising Merkel for taking such a hard line with Greece. She speaks of a Europe where the strong push the weak around. |
| Göring-Eckardt: "Wir hatten den Eindruck, es ging plötzlich um ein Europa, wo die Stärkeren den Schwächeren diktieren" | Göring-Eckardt: "Wir hatten den Eindruck, es ging plötzlich um ein Europa, wo die Stärkeren den Schwächeren diktieren" |
| Merkel, though, is busy tapping away on her mobile. Answering birthday wishes, perhaps. | Merkel, though, is busy tapping away on her mobile. Answering birthday wishes, perhaps. |
| Up now is @GoeringEckardt of the #Greens. Says third bailout is "necessary, important and right". Praises Hollande and Renzi | Up now is @GoeringEckardt of the #Greens. Says third bailout is "necessary, important and right". Praises Hollande and Renzi |
| Göring-Eckardt says she is greatly relieved that it was not the "Deutsche Weg", the German path, that won out, therefore avoiding a #Grexit | Göring-Eckardt says she is greatly relieved that it was not the "Deutsche Weg", the German path, that won out, therefore avoiding a #Grexit |
| Göring-Eckardt: "The #IMF is right - Greece urgently needs a debt reduction". She refers to the post-war solidarity shown towards #Germany | Göring-Eckardt: "The #IMF is right - Greece urgently needs a debt reduction". She refers to the post-war solidarity shown towards #Germany |
| Göring-Eckardt: #Greece needs warmth not cold-heartedness from us. Says every Green vote is for a common and solidly united Europe | Göring-Eckardt: #Greece needs warmth not cold-heartedness from us. Says every Green vote is for a common and solidly united Europe |
| Updated at 10.30am BST | Updated at 10.30am BST |
| 10.14am BST10:14 | 10.14am BST10:14 |
| We shouldn’t forget that Sigmar Gabriel was taking a much harder line on Greece earlier this month, warning that Greece had ‘torn down the last bridge” towards a compromise. What a difference a deal makes. | We shouldn’t forget that Sigmar Gabriel was taking a much harder line on Greece earlier this month, warning that Greece had ‘torn down the last bridge” towards a compromise. What a difference a deal makes. |
| Having shamefully been even more hawkish and harsher on #Greece than #Schauble it seems that @sigmargabriel is now striking a milder tone | Having shamefully been even more hawkish and harsher on #Greece than #Schauble it seems that @sigmargabriel is now striking a milder tone |
| 10.06am BST10:06 | 10.06am BST10:06 |
| Dep Chancellor @sigmargabriel straying off Greece theme: "Every baker in Berlin pays more taxes than Google, Amazon etc" | Dep Chancellor @sigmargabriel straying off Greece theme: "Every baker in Berlin pays more taxes than Google, Amazon etc" |
| 10.04am BST10:04 | 10.04am BST10:04 |
| Sigmar Gabriel has reminded German MPs of the suffering in Greece: | Sigmar Gabriel has reminded German MPs of the suffering in Greece: |
| #Gabriel: The Greeks are our friends. We cannot allow hungry children, begging pensioners, soup kitchens. 3rd prog is necessary. #Greece | #Gabriel: The Greeks are our friends. We cannot allow hungry children, begging pensioners, soup kitchens. 3rd prog is necessary. #Greece |
| 10.01am BST10:01 | 10.01am BST10:01 |
| Kate Connolly | Kate Connolly |
| Here’s a summary of the second half of Merkel’s speech: | Here’s a summary of the second half of Merkel’s speech: |
| Merkel told the Bundestag that Greece’s expressions of intention were not enough. It was necessary to see deeds. | Merkel told the Bundestag that Greece’s expressions of intention were not enough. It was necessary to see deeds. |
| Talking of the marathon of negotiations that went on over days, nights and hours, she then bestowed her praise on her finance minister Wolfgang Schauble, telling him “a very fulsome thank you”. The Bundestag reacted with a sea of applause. | Talking of the marathon of negotiations that went on over days, nights and hours, she then bestowed her praise on her finance minister Wolfgang Schauble, telling him “a very fulsome thank you”. The Bundestag reacted with a sea of applause. |
| Merkel went on to stress that the only alternative to the deal would have been “predictable chaos”. | Merkel went on to stress that the only alternative to the deal would have been “predictable chaos”. |
| Many people, she said, had “doubt and worries” as to whether Greece had the strength to emerge from its crisis. | Many people, she said, had “doubt and worries” as to whether Greece had the strength to emerge from its crisis. |
| “But I’m convinced we’d be irresponsible if we didn’t at least try this way”.Europe is strong and robust, she said. Germany too. But in the long term, Germany can only do well if Europe does well. | “But I’m convinced we’d be irresponsible if we didn’t at least try this way”.Europe is strong and robust, she said. Germany too. But in the long term, Germany can only do well if Europe does well. |
| She then stressed how the crisis had proved the strength of the Franco-German relationship, because DESPITE all their many differences, now and in the past, they had managed to come together. | She then stressed how the crisis had proved the strength of the Franco-German relationship, because DESPITE all their many differences, now and in the past, they had managed to come together. |
| This she said, should be an example of how the whole of Europe should work. | This she said, should be an example of how the whole of Europe should work. |
| She predicted that Europe would “come out of this stronger than it went in” five years ago. | She predicted that Europe would “come out of this stronger than it went in” five years ago. |
| Then she concluded by making the issue far more global. Issues such as Ukraine, the refugee crisis and terrorism were pressing and when the decision was made on Greece “I can only say we didn’t just decide about Greece”… this is a decision about having a strong Europe, and much more was at stake than just the Eurozone. | Then she concluded by making the issue far more global. Issues such as Ukraine, the refugee crisis and terrorism were pressing and when the decision was made on Greece “I can only say we didn’t just decide about Greece”… this is a decision about having a strong Europe, and much more was at stake than just the Eurozone. |
| And finally, in a direct address to her domestic audience, she concluded her address by saying: | And finally, in a direct address to her domestic audience, she concluded her address by saying: |
| “We’re doing this for Greece, as much as for the German people.” | “We’re doing this for Greece, as much as for the German people.” |
| Updated at 10.01am BST | Updated at 10.01am BST |
| 9.56am BST09:56 | 9.56am BST09:56 |
| Sigmar Gabriel, Germany’s vice-chancellor (and the most senior social democrat in the coalition) speaks next. | Sigmar Gabriel, Germany’s vice-chancellor (and the most senior social democrat in the coalition) speaks next. |
| Gabriel says it is vital that Grexit is now off the table. But he also criticises the first two Greek bailouts, saying they haven’t helped: | Gabriel says it is vital that Grexit is now off the table. But he also criticises the first two Greek bailouts, saying they haven’t helped: |
| Gabriel: IMF analysis clearly says Europe and Greece needs investment and growth, and we (the SPD) agree #Germany #Greece | Gabriel: IMF analysis clearly says Europe and Greece needs investment and growth, and we (the SPD) agree #Germany #Greece |
| 9.50am BST09:50 | 9.50am BST09:50 |
| Summary: Merkel warns of chaos if no deal | Summary: Merkel warns of chaos if no deal |
| Kate Connolly | Kate Connolly |
| Angela Merkel stressed that trust had broken down and the challenge of the past few days has been to try and reconstruct that trust. | Angela Merkel stressed that trust had broken down and the challenge of the past few days has been to try and reconstruct that trust. |
| “We had three possibilities,” she told the Bundestag, at the start of today’s debate on the Greek aid package. | “We had three possibilities,” she told the Bundestag, at the start of today’s debate on the Greek aid package. |
| 1. To bend the rules so far that they would not have been worth anything any more. But such a process would have meant the end of Europe’s ‘state of law’ (Rechtsstaat) and was therefore not something that the German government could sanction. | 1. To bend the rules so far that they would not have been worth anything any more. But such a process would have meant the end of Europe’s ‘state of law’ (Rechtsstaat) and was therefore not something that the German government could sanction. |
| 2. We give up and don’t have another attempt at saving Greece. We would have looked on as Greece haemorrhaged, as people were unable to get money any more, and chaos ensued. | 2. We give up and don’t have another attempt at saving Greece. We would have looked on as Greece haemorrhaged, as people were unable to get money any more, and chaos ensued. |
| As Merkel put it: | As Merkel put it: |
| “The alternative to this agreement would not be a ‘time-out’ from the euro ... but rather predictable chaos.” | “The alternative to this agreement would not be a ‘time-out’ from the euro ... but rather predictable chaos.” |
| That was also not an option for us. And the whole Bundestag was in agreement with that. | That was also not an option for us. And the whole Bundestag was in agreement with that. |
| We would look to a temporary time-out of the Eurozone for Greece. But this could only have happened with Greece’s approval and that of the 18 other countries. But just as the 18 were not up for this, neither was Greece.(Actually, then it seems as if she makes 4 points, but she calls this the third:). | We would look to a temporary time-out of the Eurozone for Greece. But this could only have happened with Greece’s approval and that of the 18 other countries. But just as the 18 were not up for this, neither was Greece.(Actually, then it seems as if she makes 4 points, but she calls this the third:). |
| 3. We try one last time to see whether it’s possible after all to reach a solution with all 19 on board. | 3. We try one last time to see whether it’s possible after all to reach a solution with all 19 on board. |
| She says that despite all the setbacks, that’s what has happened. Based on the values of national responsibility and European solidarity. | She says that despite all the setbacks, that’s what has happened. Based on the values of national responsibility and European solidarity. |
| That’s the way we decided to work together with Greece to find a way out of its cul de sac. | That’s the way we decided to work together with Greece to find a way out of its cul de sac. |
| She then said that it wasn’t the people of Greece who were responsible for their “misery”. | She then said that it wasn’t the people of Greece who were responsible for their “misery”. |
| She said it was wrong to see that taking the road of reforms and austerity would only strangle Greece, saying that the way in which Ireland, Portugal and Spain dealt with their crises, was proof that there was another prospect in sight. | She said it was wrong to see that taking the road of reforms and austerity would only strangle Greece, saying that the way in which Ireland, Portugal and Spain dealt with their crises, was proof that there was another prospect in sight. |
| Updated at 10.20am BST | Updated at 10.20am BST |
| 9.46am BST09:46 | 9.46am BST09:46 |
| 9.44am BST09:44 | 9.44am BST09:44 |
| Gysi cites The Telegraph: 'Germany has achieved dominance in Europe without a single shot being fired' to groans and boos in #Bundestag. | Gysi cites The Telegraph: 'Germany has achieved dominance in Europe without a single shot being fired' to groans and boos in #Bundestag. |
| Try quoting the Guardian next time, Gregor.... | Try quoting the Guardian next time, Gregor.... |
| 9.43am BST09:43 | 9.43am BST09:43 |
| Gregor Gysi, the head of the left-wing Linke party is now speaking, and warning that the German government has made terrible mistakes. | Gregor Gysi, the head of the left-wing Linke party is now speaking, and warning that the German government has made terrible mistakes. |
| Amid heckling, he criticises Merkel for allowing Schäuble to push his idea of a temporary Grexit. | Amid heckling, he criticises Merkel for allowing Schäuble to push his idea of a temporary Grexit. |
| Gysi also reminds MPs that Germany has done awfully well out of the euro, making its exports more competitive. | Gysi also reminds MPs that Germany has done awfully well out of the euro, making its exports more competitive. |
| #Gysi: Merkel you are seen as a strong woman - but Schaueble has been chancellor recently, pushing 'scandalous' ideas of #Grexit. | #Gysi: Merkel you are seen as a strong woman - but Schaueble has been chancellor recently, pushing 'scandalous' ideas of #Grexit. |
| #Gysi: Germany needs the Euro more than #Greece. You know this Schaueble but daren't say it. | #Gysi: Germany needs the Euro more than #Greece. You know this Schaueble but daren't say it. |
| 9.36am BST09:36 | 9.36am BST09:36 |
| 9.34am BST09:34 | 9.34am BST09:34 |
| MPs listened in respectful silence during Merkel’s speech - such a contrast with Wednesday night’s drama in Athens (or your average Prime Minister’s Questions in London). | MPs listened in respectful silence during Merkel’s speech - such a contrast with Wednesday night’s drama in Athens (or your average Prime Minister’s Questions in London). |
| And they give her a rousing round of applause as she exits the lecturn. | And they give her a rousing round of applause as she exits the lecturn. |
| 9.33am BST09:33 | 9.33am BST09:33 |
| Angela Merkel ends her speech by assuring MPs that Europe will come out of this crisis stronger. | Angela Merkel ends her speech by assuring MPs that Europe will come out of this crisis stronger. |
| #Merkel: We have not only decided about #Greece. This is for a strong Europe and a strong EZ. | #Merkel: We have not only decided about #Greece. This is for a strong Europe and a strong EZ. |
| 9.32am BST09:32 | 9.32am BST09:32 |
| Merkel insists that the Greek deal is the only option, the alternative is chaos. | Merkel insists that the Greek deal is the only option, the alternative is chaos. |
| Her message to doubtful MPs is that we must give Greece a chance, and reminds them that Germany’s success is tied up with Europe’s. | Her message to doubtful MPs is that we must give Greece a chance, and reminds them that Germany’s success is tied up with Europe’s. |
| She admits there were disagreements with Paris: | She admits there were disagreements with Paris: |
| #Merkel: Germany & France has had very different opinions. But we can find ways to agree and show the way to others in Europe. #Greece | #Merkel: Germany & France has had very different opinions. But we can find ways to agree and show the way to others in Europe. #Greece |
| 9.29am BST09:29 | 9.29am BST09:29 |
| Hearty applause for #Schauble in #Bundestag | Hearty applause for #Schauble in #Bundestag |
| 9.27am BST09:27 | 9.27am BST09:27 |
| Applause ripples across the debating chamber as Merkel thanks Schäuble for working “tirelessly”. | Applause ripples across the debating chamber as Merkel thanks Schäuble for working “tirelessly”. |
| 9.26am BST09:26 | 9.26am BST09:26 |
| Merkel is now criticising Alexis Tsipras’s government for sending the Greek economy into reverse this year -- but she’s encouraged by Wednesday night’s vote: | Merkel is now criticising Alexis Tsipras’s government for sending the Greek economy into reverse this year -- but she’s encouraged by Wednesday night’s vote: |
| #Greece: Greece had to pass laws to talk about 3rd programme. Greek parl has by impressive majority passed these reforms. | #Greece: Greece had to pass laws to talk about 3rd programme. Greek parl has by impressive majority passed these reforms. |
| 9.24am BST09:24 | 9.24am BST09:24 |
| On debt relief, Merkel says that haircuts are not allowed within the eurozone. | On debt relief, Merkel says that haircuts are not allowed within the eurozone. |
| 9.22am BST09:22 | 9.22am BST09:22 |
| Merkel: Temporary Grexit was not supported | Merkel: Temporary Grexit was not supported |
| Merkel admits that her finance minister’s plan for a “temporary time-out” from the eurozone was a non-starter: | Merkel admits that her finance minister’s plan for a “temporary time-out” from the eurozone was a non-starter: |
| #Merkel: Allowing #Greece to leave EZ would have been a end to European solidarity. We would not have allowed it. | #Merkel: Allowing #Greece to leave EZ would have been a end to European solidarity. We would not have allowed it. |
| #Merkel: The temporary #Grexit plan was not favored by #Greece nor by other EZ members. We could not have allowed this. | #Merkel: The temporary #Grexit plan was not favored by #Greece nor by other EZ members. We could not have allowed this. |
| 9.20am BST09:20 | 9.20am BST09:20 |
| Merkel is covering some familiar themes, saying that trust in Greece has been lost recently. | Merkel is covering some familiar themes, saying that trust in Greece has been lost recently. |
| Solidarity and reforms must go together | Solidarity and reforms must go together |
| We could not simply give into all Greece’s demands, as they would have violated European treaties. | We could not simply give into all Greece’s demands, as they would have violated European treaties. |
| 9.19am BST09:19 | 9.19am BST09:19 |
| #Merkel: #Tsipras won w/2 promises 1) to end austerity 2) that #Greece would remain in EZ. They cannot exist together. | #Merkel: #Tsipras won w/2 promises 1) to end austerity 2) that #Greece would remain in EZ. They cannot exist together. |
| 9.18am BST09:18 | 9.18am BST09:18 |
| Angela Merkel opens the debate, telling MPs that Europe has seen unprecedented drama in Greece in recent days. | Angela Merkel opens the debate, telling MPs that Europe has seen unprecedented drama in Greece in recent days. |
| After MPs wish #Merkel a happy birthday she takes to the podium. Talks of dramatic days "a degree of drama for Greece that cannot be topped" | After MPs wish #Merkel a happy birthday she takes to the podium. Talks of dramatic days "a degree of drama for Greece that cannot be topped" |
| Merkel cites the bank closures and capital controls which Greece has now experienced for almost three weeks: | Merkel cites the bank closures and capital controls which Greece has now experienced for almost three weeks: |
| #Merkel: Can you imagine how it would be if German pensioners were lining up to get their monthly pension? #Greece | #Merkel: Can you imagine how it would be if German pensioners were lining up to get their monthly pension? #Greece |
| 9.15am BST09:15 | 9.15am BST09:15 |
| German debate begins | German debate begins |
| The debate is getting underway now -- live feed here. | The debate is getting underway now -- live feed here. |
| #Greece debate starts in German Bundestag with President Lammert wishing Angela #Merkel a happy birthday. | #Greece debate starts in German Bundestag with President Lammert wishing Angela #Merkel a happy birthday. |
| 9.11am BST09:11 | 9.11am BST09:11 |
| Norbert Lammert’s voice breaks as he says that with Philipp Missfelder’s death, “the Bundestag has lost an engaged and respected parliamentarian”. | Norbert Lammert’s voice breaks as he says that with Philipp Missfelder’s death, “the Bundestag has lost an engaged and respected parliamentarian”. |
| Updated at 9.13am BST | Updated at 9.13am BST |
| 9.10am BST09:10 | 9.10am BST09:10 |
| Kate Connolly | Kate Connolly |
| German MPs are now in the chamber. | German MPs are now in the chamber. |
| Merkel who is celebrating her 61st birthday today, has been given a bouquet of flowers. Most of the 630 MPs have just come from the funeral of the 35 year old CDU politician Philipp Missfelder, who died suddenly from a lung embolism earlier this week, leaving a wife and two young children. | Merkel who is celebrating her 61st birthday today, has been given a bouquet of flowers. Most of the 630 MPs have just come from the funeral of the 35 year old CDU politician Philipp Missfelder, who died suddenly from a lung embolism earlier this week, leaving a wife and two young children. |
| That’s why many of them are dressed in black. | That’s why many of them are dressed in black. |
| Norbert Lammert, the Bundestag president is now paying tribute to the politician, who was a rising star in the party. | Norbert Lammert, the Bundestag president is now paying tribute to the politician, who was a rising star in the party. |
| Updated at 9.40am BST | Updated at 9.40am BST |
| 9.06am BST09:06 | 9.06am BST09:06 |
| Greek deal is 'poisonous cocktail' | Greek deal is 'poisonous cocktail' |
| Kate Connolly | Kate Connolly |
| Sahra Wagenknecht of the left-wing Linke party has just told German television that whilst her party wouldn’t deny Greece needs widespread reform, the German government’s approach is a complete fudge. | Sahra Wagenknecht of the left-wing Linke party has just told German television that whilst her party wouldn’t deny Greece needs widespread reform, the German government’s approach is a complete fudge. |
| “This is not a Hilfspaket - a package to help Greece - it’s a poisonous cocktail”. | “This is not a Hilfspaket - a package to help Greece - it’s a poisonous cocktail”. |
| Updated at 9.06am BST | Updated at 9.06am BST |
| 8.56am BST08:56 | 8.56am BST08:56 |
| Tusk fears political contagion from Greek crisis | Tusk fears political contagion from Greek crisis |
| Donald Tusk, the European Council president, has warned that the Greek crisis is helping to fuel a “pre-revolutionary atmosphere” in Europe. | Donald Tusk, the European Council president, has warned that the Greek crisis is helping to fuel a “pre-revolutionary atmosphere” in Europe. |
| Tusk who brokered the Greek bailout deal last weekend, told the Financial Times that: | Tusk who brokered the Greek bailout deal last weekend, told the Financial Times that: |
| “For me, the atmosphere is a little similar to the time after 1968 in Europe.” | “For me, the atmosphere is a little similar to the time after 1968 in Europe.” |
| “I can feel, maybe not a revolutionary mood, but something like widespread impatience. When impatience becomes not an individual but a social experience of feeling, this is the introduction for revolutions.” | “I can feel, maybe not a revolutionary mood, but something like widespread impatience. When impatience becomes not an individual but a social experience of feeling, this is the introduction for revolutions.” |
| It’s that ideological and political “contagion” that really worries Tusk, not just the financial contagion that Greece could cause. | It’s that ideological and political “contagion” that really worries Tusk, not just the financial contagion that Greece could cause. |
| Those of you who are disillusioned with the status quo might welcome a repeat of the heady days of the 60’s, of course. But the rise of Golden Dawn in Greece has shown what can happen when mainstream parties lose their way.... | Those of you who are disillusioned with the status quo might welcome a repeat of the heady days of the 60’s, of course. But the rise of Golden Dawn in Greece has shown what can happen when mainstream parties lose their way.... |
| Tusk's warning. Trust a good Pole to know what it means to be ravaged by extreme-right & extreme-left all at once http://t.co/MOgE138Myo | Tusk's warning. Trust a good Pole to know what it means to be ravaged by extreme-right & extreme-left all at once http://t.co/MOgE138Myo |
| "In fact, it looked like an anti-German demonstration." @DonaldTusk on @atsipras in #EU parliament. Intvw transcript: http://t.co/eEPeIeGeND | "In fact, it looked like an anti-German demonstration." @DonaldTusk on @atsipras in #EU parliament. Intvw transcript: http://t.co/eEPeIeGeND |
| 8.40am BST08:40 | 8.40am BST08:40 |
| Germany isn’t the only eurozone country asking its MPs to vote on the Greek bailout plan. | Germany isn’t the only eurozone country asking its MPs to vote on the Greek bailout plan. |
| Austria is also due to debate it today, and likely to approve the deal. | Austria is also due to debate it today, and likely to approve the deal. |
| Both Latvia and Estonia are expected to take it to parliament too. Other country’s have already given their assent; France even voted before Greece! | Both Latvia and Estonia are expected to take it to parliament too. Other country’s have already given their assent; France even voted before Greece! |
| Here’s a full explanation: | Here’s a full explanation: |
| Related: Which countries still need to approve a Greek bailout – and how will they vote? | Related: Which countries still need to approve a Greek bailout – and how will they vote? |
| Updated at 9.00am BST | Updated at 9.00am BST |
| 8.32am BST08:32 | 8.32am BST08:32 |
| Row brewing over Schäuble's Grexit plan | Row brewing over Schäuble's Grexit plan |
| Kate Connolly | Kate Connolly |
| The ‘temporary Grexit’ proposal presented by Wolfgang Schäuble at last weekend’s Brussels summit is likely to dominate this morning’s debate. | The ‘temporary Grexit’ proposal presented by Wolfgang Schäuble at last weekend’s Brussels summit is likely to dominate this morning’s debate. |
| Kate Connolly reports: | Kate Connolly reports: |
| There are ever louder rumblings here this morning of a growing split in the coalition government focused on a fallout between SPD chief Sigmar Gabriel and finance minister Wolfgang Schäuble of the CDU as to who knew what and when about Schäuble’s Grexit paper. | There are ever louder rumblings here this morning of a growing split in the coalition government focused on a fallout between SPD chief Sigmar Gabriel and finance minister Wolfgang Schäuble of the CDU as to who knew what and when about Schäuble’s Grexit paper. |
| The issue is likely to dominate today’s debate in the Bundestag. | The issue is likely to dominate today’s debate in the Bundestag. |
| Gabriel says the Grexit plan was presented at Brussels by Schauble as if he had approved of it, when he says he hadn’t. | Gabriel says the Grexit plan was presented at Brussels by Schauble as if he had approved of it, when he says he hadn’t. |
| Schäuble insists Gabriel had agreed on it beforehand. The word ‘liar’ is being bandied about....... | Schäuble insists Gabriel had agreed on it beforehand. The word ‘liar’ is being bandied about....... |
| The debate begins in 30 minutes.... | The debate begins in 30 minutes.... |
| Bundestag debate on #Greece to start soon. Forget caricatures & watch how interesting+diversified German politics is: http://t.co/uw8xUpJ8g4 | Bundestag debate on #Greece to start soon. Forget caricatures & watch how interesting+diversified German politics is: http://t.co/uw8xUpJ8g4 |
| 8.13am BST08:13 | 8.13am BST08:13 |
| Visitors to Greece are already feeling the impact of the austerity measures which creditors demanded, in return for opening talks on a third bailout: | Visitors to Greece are already feeling the impact of the austerity measures which creditors demanded, in return for opening talks on a third bailout: |
| Looks like action is underway. This letter has just been slipped under hotel room door in #Greece @BBCBusiness pic.twitter.com/1drAU6wQ8h | Looks like action is underway. This letter has just been slipped under hotel room door in #Greece @BBCBusiness pic.twitter.com/1drAU6wQ8h |
| 8.11am BST08:11 | 8.11am BST08:11 |
| Kate Connolly | Kate Connolly |
| Around 50 German MPs from Angela Merkel’s conservative alliance are expected to revolt against the government and vote no to a third Greek bailout in the Bundestag today. | Around 50 German MPs from Angela Merkel’s conservative alliance are expected to revolt against the government and vote no to a third Greek bailout in the Bundestag today. |
| My colleague Kate Connolly in Berlin reports: | My colleague Kate Connolly in Berlin reports: |
| In what is expected to be a heated and emotional debate, the 6th time in five years that the German parliament has taken a decision directly relating to the Greek crisis, the rebels say they will vote ‘nein’ out of anger at the German chancellor’s decision to offer Greece another bailout, having signalled at one point that she was willing to push for Greece to leave the Eurozone. | In what is expected to be a heated and emotional debate, the 6th time in five years that the German parliament has taken a decision directly relating to the Greek crisis, the rebels say they will vote ‘nein’ out of anger at the German chancellor’s decision to offer Greece another bailout, having signalled at one point that she was willing to push for Greece to leave the Eurozone. |
| Other MPs are furious over the way Germany is seen to have acted towards Greece during the negotiations: | Other MPs are furious over the way Germany is seen to have acted towards Greece during the negotiations: |
| In a taster of what might come on Friday, Reinhard Bütikofer, a Green MEP, accused Schäuble of giving Germany a “heartless, imperious, and hideous” face. | In a taster of what might come on Friday, Reinhard Bütikofer, a Green MEP, accused Schäuble of giving Germany a “heartless, imperious, and hideous” face. |
| 8.02am BST08:02 | 8.02am BST08:02 |
| Today’s vote isn’t in doubt because of the size of Germany’s grand coalition between Merkel’s CDU/CSU and the SPD. | Today’s vote isn’t in doubt because of the size of Germany’s grand coalition between Merkel’s CDU/CSU and the SPD. |
| Germany to give verdict on Greece. Vote in Bundestag will pass as CDU/SPD coal w/ big majority http://t.co/g1ZuWVIJvj pic.twitter.com/hcyFhTvIIA | Germany to give verdict on Greece. Vote in Bundestag will pass as CDU/SPD coal w/ big majority http://t.co/g1ZuWVIJvj pic.twitter.com/hcyFhTvIIA |
| 8.00am BST08:00 | 8.00am BST08:00 |
| One of Angela Merkel’s close allies has already pledged to vote in favour of negotiating a third Greek bailout: | One of Angela Merkel’s close allies has already pledged to vote in favour of negotiating a third Greek bailout: |
| Gunther Krichbaum (CDU mucky muck) tells ARD he will vote YES in the Bundestag, for anyone whipping the #Greece vote on trading floors. | Gunther Krichbaum (CDU mucky muck) tells ARD he will vote YES in the Bundestag, for anyone whipping the #Greece vote on trading floors. |
| 7.59am BST07:59 | 7.59am BST07:59 |
| Lagarde: Greece needs debt relief | Lagarde: Greece needs debt relief |
| Greece’s bailout package simply isn’t viable unless the country is given significant debt relief to make its borrowings sustainable. | Greece’s bailout package simply isn’t viable unless the country is given significant debt relief to make its borrowings sustainable. |
| That’s the message from International Monetary Fund chief Christine Lagarde this morning. She told France’s Europe 1 radio station that only a “complete package” would lure the Fund back to help: | That’s the message from International Monetary Fund chief Christine Lagarde this morning. She told France’s Europe 1 radio station that only a “complete package” would lure the Fund back to help: |
| “This complete package has two legs, a Greek leg that entails an in-depth reform of the Greek economy. | “This complete package has two legs, a Greek leg that entails an in-depth reform of the Greek economy. |
| “That means holding a budgetary position that is sound and gives the country solidity; and the second leg is that of the lenders, which entails supplying financing and restructuring the debt to ease its burden.” | “That means holding a budgetary position that is sound and gives the country solidity; and the second leg is that of the lenders, which entails supplying financing and restructuring the debt to ease its burden.” |
| ECB chief Mario Draghi made the same point yesterday, and indeed the Greek aid deal does include a pledge to consider debt relief. But whether eurozone governments can face giving Greece a 30-year grace period isn’t yet clear. | ECB chief Mario Draghi made the same point yesterday, and indeed the Greek aid deal does include a pledge to consider debt relief. But whether eurozone governments can face giving Greece a 30-year grace period isn’t yet clear. |
| Lagarde IMF says eurozone creditors Greece bailout is not 'viable' without debt relief. Draghi ECB agrees. Why this EU charade? #Grexit | Lagarde IMF says eurozone creditors Greece bailout is not 'viable' without debt relief. Draghi ECB agrees. Why this EU charade? #Grexit |
| Updated at 8.06am BST | Updated at 8.06am BST |
| 7.50am BST07:50 | 7.50am BST07:50 |
| Introduction: Merkel celebrates birthday with Greek vote | Introduction: Merkel celebrates birthday with Greek vote |
| Good morning. | Good morning. |
| Greece’s bitterly fought and generally flawed bailout plan faces another hurdle this morning -- approval from Germany. | Greece’s bitterly fought and generally flawed bailout plan faces another hurdle this morning -- approval from Germany. |
| MPs will head to the Bundestag this morning for a debate on whether to open talks on a third aid package. | MPs will head to the Bundestag this morning for a debate on whether to open talks on a third aid package. |
| Spoiler alert: they will give their assent, despite misgivings in Germany about the package. But there will be a rebellion among Merkel’s CDU party, with some MPs firmly believing Greece should quit the currency union, and doubting its ability or commitment to reform. | Spoiler alert: they will give their assent, despite misgivings in Germany about the package. But there will be a rebellion among Merkel’s CDU party, with some MPs firmly believing Greece should quit the currency union, and doubting its ability or commitment to reform. |
| The debate starts at 10am in Berlin (so 9am BST or 11am in Greece). | The debate starts at 10am in Berlin (so 9am BST or 11am in Greece). |
| Die Sondersitzung im #Bundestag zu den #GriechenlandHilfen wird um 10 Uhr live auf http://t.co/Owk1pEJsVJ übertragen. pic.twitter.com/NjpVZQfnUU | Die Sondersitzung im #Bundestag zu den #GriechenlandHilfen wird um 10 Uhr live auf http://t.co/Owk1pEJsVJ übertragen. pic.twitter.com/NjpVZQfnUU |
| Incidentally, it’s Angela Merkel’s 61st birthday today. I somewhat doubt whether Alexis Tsipras sent a card, after his hoofing in Brussels last weekend. Perhaps he’d like to give her the bumps instead. | Incidentally, it’s Angela Merkel’s 61st birthday today. I somewhat doubt whether Alexis Tsipras sent a card, after his hoofing in Brussels last weekend. Perhaps he’d like to give her the bumps instead. |
| Let’s just hope no-one sings Happy Birthday to her, after last year’s little incident: | Let’s just hope no-one sings Happy Birthday to her, after last year’s little incident: |
| We’ll be tracking all the main developments as usual (in the Greek crisis, not Angela’s birthday) | We’ll be tracking all the main developments as usual (in the Greek crisis, not Angela’s birthday) |